Top 10 US stocks as a percentage of the entire US stock market

in economy •  4 months ago

    People chat about how a handful of tech stocks dominate the US stock market, accounting for most of the market gains of the last five years. But how top-heavy has it got?

    Here is a chart of the top ten stocks by market capitalisation, as a percentage of all listed stocks by market cap:


    source

    The last time the top ten were worth 75% of the entire market was in 1929, just before the legendary Wall Street crash.

    This puts people who own index-tracker funds in a dangerous position. Yes they've ridden the tech boom upwards - but they are not diversified. All it takes is one or two tech stocks to make mis-steps and their value will evaporate.

    Maybe it's time to cash in and sell.

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